HD Hyundai Marine Engine (A071970) Q3 2024 earnings summary

Executive summary

• HD Hyundai Marine Engine posted strong revenue and profit growth for the nine months ended September 30, 2024, driven by a recovery in shipbuilding demand and increased sales of eco-friendly engines.

• The company completed a major change in ownership, with HD Korea Shipbuilding & Offshore Engineering becoming the largest shareholder in July 2024.

• Significant restructuring included the liquidation of non-core subsidiaries and a rebranding from STX Heavy Industries to HD Hyundai Marine Engine.

Financial highlights

• Consolidated revenue for the nine months was ₩227.2 billion, up from ₩164.5 billion year-over-year.

• Operating income rose to ₩24.1 billion from ₩11.9 billion year-over-year.

• Net income attributable to owners of the parent was ₩25.6 billion, up from ₩5.6 billion year-over-year.

• Gross margin improved to 27.5% from 22.6% year-over-year.

• Basic EPS for the period was 865 won, compared to 191 won year-over-year.

Outlook and guidance

• The company expects continued strong demand for eco-friendly ship engines, supported by global environmental regulations and increased new ship orders.

• Ongoing investments in production capacity and R&D are planned to enhance competitiveness in LNG, LPG, and dual-fuel engines.